Generally Speaking, Net Operating Income Under Variable and Absorption Costing

question 344

Multiple Choice

Generally speaking, net operating income under variable and absorption costing will:

• A) always be equal.
• B) never be equal.
• C) be equal only when production and sales are equal.
• D) be equal only when production exceeds sales.

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Definitions:

Microvolts

A unit of electric potential equal to one millionth of a volt, often used in measuring the electrical activity of neurons and muscles.

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